Aegis Capital Corp. agreed to pay a $750,000 penalty and retain a compliance expert after the SEC found that it violated a financial record-keeping and reporting rule.
The company also reached a settlement with the Financial Industry Regulatory Authority that includes an additional $550,000 penalty.
The New York-based brokerage firm admitted it failed to file suspicious activity reports on transactions that raised red flags indicating that they were potentially related to the market manipulation of low-priced securities, the SEC said in a news release.
Aegis Capital CEO Robert Eide was fined $40,000 for causing Aegis Capital's violations. He did not admit or deny the SEC's findings.
Broker/dealers are required to file suspicious activity reports for certain transactions suspected to involve fraudulent activity or to have no business or apparent lawful purpose, the SEC said.